The federal government has withdrawn both notifications that imposed restrictions on receipt of pension and salary for persons joining government employment after retirement. According to a new office memo issued by the Ministry of Finance, the revocation of these notices will take effect immediately.
The Ministry of Finance has withdrawn the notification on 22 April 2025 which had required retired persons returning to public service to choose between receiving pension or salary.
Under this announcement, federal retirees who resumed work after age 60 were prohibited from receiving both a pension and a salary at the same time.
Read: The government introduces a new pension scheme
The federal government officially implemented the defined contribution pension scheme for public employees in March, marking a major reform of the pension system. The reform was aimed at curbing rising pension costs, estimated at Rs1.05 trillion for 2024-25, a 29% increase from last year.
Under the new rules, employees would not be allowed to withdraw money before retirement; at retirement they can withdraw up to 25%, while the rest is invested for 20 years or until age 80.
